The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is AppLovin (APP) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.
AppLovin is a member of our Business Services group, which includes 289 different companies and currently sits at #9 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. AppLovin is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for APP's full-year earnings has moved 30.9% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, APP has moved about 14.1% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of 6.4% on a year-to-date basis. This means that AppLovin is outperforming the sector as a whole this year.
Another Business Services stock, which has outperformed the sector so far this year, is Cintas (CTAS). The stock has returned 9.8% year-to-date.
The consensus estimate for Cintas' current year EPS has increased 2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, AppLovin is a member of the Technology Services industry, which includes 153 individual companies and currently sits at #87 in the Zacks Industry Rank. This group has gained an average of 8.1% so far this year, so APP is performing better in this area.
On the other hand, Cintas belongs to the Business - Services industry. This 24-stock industry is currently ranked #159. The industry has moved +7.5% year to date.
AppLovin and Cintas could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.
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